Ethereum appears to be settling into a period of calm as buyers and sellers keep the price relatively stable. However, several analysts predict this could change soon, pointing to key price levels that will be crucial for Ethereum in the coming days.
Dutch Analyst Predicts $3,700 for Ethereum #
After a turbulent period, the price of Ethereum has stabilized over the past few days, and this weekend has brought little change so far. At the time of writing, the coin is valued at $3,035, the same price as yesterday.
However, there is a chance that Ethereum could soon be worth $3,700, speculates well-known Dutch analyst Michaël van de Poppe, provided the price does not drop below current levels.
Ethereum is currently hovering around a crucial support level that previously served as resistance. If the price holds here, it could signal an impending rally.
“I’d like to see ETH hold this previous resistance zone as support. That would mean buyers are willing to step in at a higher level than last week, and that could indicate a potential rally towards $3,700,” said Van de Poppe.
Key Price Indicator Flashes Green #
Crypto analyst Merlijn The Trader points to another price level. According to him, $3,900 is a critical point for Ethereum and will determine the trend the coin follows.
“Break through [$3,900], and Ethereum will reverse the [downtrend] trend for good,” predicts Merlijn.
According to the analyst, an important indicator has turned green. This is the so-called MACD, a technical indicator that measures the trend and momentum of the price.
The MACD consists of a histogram with red and green bars and two lines. When the histogram turns green and the lines cross each other upwards, as is now the case, it is a bullish (positive) sign.
In fact, the last time the bars turned green, Ethereum rose by more than 100 percent in a few months.
Ethereum Supply on Exchanges Hits Historic Low #
There may be another factor contributing to a new rally for Ethereum.
The available supply on exchanges is decreasing significantly. It has even reached a historic low: there has never been so little Ethereum for sale.
That is good news for investors, as increasing demand and decreasing supply typically lead to strong price increases.